Sensitivity analysis can be used to assess how vulnerable a proposed capital project is to changes in its estimates.

Question

Quizplus · Accepted Answer

Sensitivity analysis is a technique used to determine how changes in different variables affect the overall outcome of a project. It is commonly used in capital budgeting to evaluate the vulnerability of a proposed project to changes in its estimates. Therefore, the statement is true.

Sensitivity Analysis Can Be Used to Assess How Vulnerable a Proposed